Commvault Beneish M Score

CVLT
 Stock
  

USD 57.62  0.80  1.41%   

This module uses fundamental data of Commvault Systems to approximate the value of its Beneish M Score. Commvault Systems M Score tells investors if the company management is likely to be manipulating earnings. The score is calculated using eight financial indicators that are adjusted by a specific multiplier. Please note, the M Score is a probabilistic model and cannot detect companies that manipulate their earnings with 100% accuracy. Continue to Commvault Systems Piotroski F Score and Commvault Systems Altman Z Score analysis.
  
Commvault Systems Total Debt is comparatively stable at the moment as compared to the past year. Commvault Systems reported Total Debt of 16.05 Million in 2021. Debt Current is likely to gain to about 5.3 M in 2022, whereas Issuance Repayment of Debt Securities is likely to drop (755.6 K) in 2022. Commvault Systems Quick Ratio is comparatively stable at the moment as compared to the past year. Commvault Systems reported Quick Ratio of 1.15 in 2021. Net Current Assets as percentage of Total Assets is likely to gain to 11.32 in 2022, whereas Total Assets Per Share are likely to drop 15.98 in 2022.
At this time, it appears that Commvault Systems is an unlikely manipulator. The earnings manipulation may begin if Commvault Systems' top management creates an artificial sense of financial success, forcing the stock price to be traded at a high price-earnings multiple than it should be. In general, excessive earnings management by Commvault Systems executives may lead to removing some of the operating profits from subsequent periods to inflate earnings in the following periods. This way, the manipulation of Commvault Systems' earnings can lead to misrepresentations of actual financial condition, taking the otherwise loyal stakeholders on to the path of questionable ethical practices and plain fraud.
-3.32
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables0.94Focus
Asset Quality0.56Focus
Expense Coverage1.06Focus
Gross Margin Strengs0.95Focus
Accruals Factor1.06Focus
Depreciation Resistance0.96Focus
Net Sales Growth1.0Focus
Financial Leverage Condition0.86Focus

Commvault Systems Beneish M-Score Indicator Trends

The cure to earnings manipulation is the transparency of financial reporting. It will typically remove the temptation of the top executives to inflate earnings (i.e., to promote the idea of 'winning at any cost'). Because a healthy internal audit department can enhance transparency, the board should promote the auditors' access to all the record-keeping systems across the enterprise. For example, if Commvault Systems' auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back.
Current ValueLast YearChange From Last Year 10 Year Trend
Revenues768.7 M769.6 M
Slightly Down
Increasing
Slightly volatile
Selling General and Administrative Expense470.5 M444.7 M
Notably Up
Increasing
Slightly volatile
Net Cash Flow from Operations157.7 M177.2 M
Fairly Down
Increasing
Slightly volatile
Depreciation Amortization and Accretion11.8 M10.9 M
Notably Up
Increasing
Slightly volatile
Total Assets864.1 M816.1 M
Notably Up
Increasing
Slightly volatile
Investments65.9 M50.2 M
Significantly Up
Increasing
Slightly volatile
Investments Current65.4 M50.2 M
Significantly Up
Increasing
Slightly volatile
Investments Non Current3.4 M3.3 M
Notably Up
Decreasing
Slightly volatile
Property Plant and Equipment Net125.1 M121.4 M
Fairly Up
Increasing
Slightly volatile
Trade and Non Trade Receivables181.8 M194.2 M
Notably Down
Increasing
Slightly volatile
Total Liabilities509.8 M560.3 M
Significantly Down
Increasing
Slightly volatile
Current Assets577.8 M484.1 M
Fairly Up
Increasing
Slightly volatile
Assets Non Current286.3 M332 M
Fairly Down
Increasing
Slightly volatile
Current Liabilities375.1 M394.1 M
Notably Down
Increasing
Slightly volatile
Liabilities Non Current134.7 M166.2 M
Significantly Down
Increasing
Slightly volatile
Total Debt16.2 M16 M
Fairly Up
Increasing
Stable
Debt Current5.3 M4.8 M
Moderately Up
Decreasing
Slightly volatile
Debt Non Current12.8 M11.3 M
Moderately Up
Increasing
Slightly volatile
Operating Income44.8 M41.6 M
Significantly Up
Decreasing
Slightly volatile
Gross Margin0.810.852
Notably Down
Decreasing
Slightly volatile

Commvault Systems Beneish M-Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to detect the potential manipulation of earnings. Understanding the correlation between Commvault Systems' different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Commvault Systems in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find Commvault Systems' degree of accounting gimmicks and manipulations.

About Commvault Systems Beneish M Score

M-Score is one of many grading techniques for value stocks. It was developed by Professor M. Daniel Beneish of the Kelley School of Business at Indiana University and published in 1999 under the paper titled The Detection of Earnings Manipulation. The Beneish score is a multi-factor model that utilizes financial identifiers to compile eight variables used to classify whether a company has manipulated its reported earnings. The variables are built from the officially filed financial statements to create a final score call 'M Score.' The score helps to identify companies that are likely to manipulate their profits if they show deteriorating gross margins, operating expenses, and leverage against growing revenue.

Depreciation Amortization and Accretion

11.75 Million

Commvault Systems Depreciation Amortization and Accretion is comparatively stable at the moment as compared to the past year. Commvault Systems reported Depreciation Amortization and Accretion of 10.95 Million in 2021

Commvault Systems Earnings Manipulation Drivers

Although earnings manipulation is typically not the result of intentional misconduct by the c-level executives, it is still a widespread practice by the senior management of public companies such as Commvault Systems. It is usually done by a series of misrepresentations of various accounting rules and operating activities across multiple financial cycles. The best way to spot the manipulation is to examine the historical financial statement to find inconsistencies in earning reports to find trends in assets or liabilities that are not sustainable in the future.
201720182019202020212022 (projected)
Revenues699.39 M710.96 M670.88 M723.47 M769.59 M768.7 M
Total Assets818.64 M822.45 M845.08 M904.17 M816.08 M864.11 M
Current Assets646.79 M655 M513.69 M607.6 M484.08 M577.8 M
Assets Non Current171.85 M167.45 M331.39 M296.57 M332 M286.31 M
Total Liabilities414.58 M431.15 M433.17 M510.14 M560.25 M509.78 M
Current Liabilities324.17 M326.35 M328.55 M373.2 M394.06 M375.09 M
Operating Income(946 K)4.91 M(17.51 M)(22.26 M)41.57 M44.85 M
Investments124.31 M131.64 M130.34 M43.65 M50.19 M65.89 M
Investments Current120.69 M131.64 M130.34 M43.65 M50.19 M65.36 M

About Commvault Systems Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Commvault Systems's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Commvault Systems using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Commvault Systems based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Commvault Systems, Inc. provides data protection and information management software applications and related services in the United States and internationally. Commvault Systems, Inc. was founded in 1988 and is headquartered in Tinton Falls, New Jersey. Commvault Systems operates under SoftwareApplication classification in the United States and is traded on NASDAQ Exchange. It employs 2800 people.

Commvault Systems Investors Sentiment

The influence of Commvault Systems' investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in Commvault. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock markets does not have a solid backing from leading economists and market statisticians.
Investor biases related to Commvault Systems' public news can be used to forecast risks associated with investment in Commvault. The trend in average sentiment can be used to explain how an investor holding Commvault can time the market purely based on public headlines and social activities around Commvault Systems. Please note that most equiteis that are difficult to arbitrage are affected by market sentiment the most.
Commvault Systems' market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Commvault Systems' and other traded tickers. The bigger the bubble, the more accurate is the estimated score. Higher bars for a given day show more participation in the average Commvault Systems' news discussions. The higher the estimate score, the more favorable is the investor's outlook on Commvault Systems.

Commvault Systems Implied Volatility

    
  37.11  
Commvault Systems' implied volatility exposes the market's sentiment of Commvault Systems stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Commvault Systems' implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Commvault Systems stock will not fluctuate a lot when Commvault Systems' options are near their expiration.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards Commvault Systems in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, Commvault Systems' short interest history, or implied volatility extrapolated from Commvault Systems options trading.

Pair Trading with Commvault Systems

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Commvault Systems position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Commvault Systems will appreciate offsetting losses from the drop in the long position's value.

Moving against Commvault Systems

0.51CDKCDK Global Fiscal Year End 16th of August 2022 PairCorr
The ability to find closely correlated positions to Commvault Systems could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Commvault Systems when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Commvault Systems - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Commvault Systems to buy it.
The correlation of Commvault Systems is a statistical measure of how it moves in relation to other equities. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Commvault Systems moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Commvault Systems moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Commvault Systems can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching
Continue to Commvault Systems Piotroski F Score and Commvault Systems Altman Z Score analysis. Note that the Commvault Systems information on this page should be used as a complementary analysis to other Commvault Systems' statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Price Transformation module to use Price Transformation models to analyze depth of different equity instruments across global markets.

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When running Commvault Systems price analysis, check to measure Commvault Systems' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Commvault Systems is operating at the current time. Most of Commvault Systems' value examination focuses on studying past and present price action to predict the probability of Commvault Systems' future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Commvault Systems' price. Additionally, you may evaluate how the addition of Commvault Systems to your portfolios can decrease your overall portfolio volatility.
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Is Commvault Systems' industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Commvault Systems. If investors know Commvault will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Commvault Systems listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
-0.73
Market Capitalization
2.5 B
Quarterly Revenue Growth YOY
0.079
Return On Assets
0.0249
Return On Equity
0.0744
The market value of Commvault Systems is measured differently than its book value, which is the value of Commvault that is recorded on the company's balance sheet. Investors also form their own opinion of Commvault Systems' value that differs from its market value or its book value, called intrinsic value, which is Commvault Systems' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Commvault Systems' market value can be influenced by many factors that don't directly affect Commvault Systems' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Commvault Systems' value and its price as these two are different measures arrived at by different means. Investors typically determine Commvault Systems value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Commvault Systems' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.